Rent increase for Bedford council's temporary accommodation

The executive decision, signed off by the portfolio holder for housing and regulatory services councillor Phillippa Martin-Moran-Bryant on April 23, comes amid a circa £450,000 shortfall in managing council-owned temporary homes during 2023/24.

Officials warn a similar overspend is expected for 2024/25 year, contributing to wider pressures facing the council’s general fund.

The new charges aim to bring older properties in line with the rent and service levels already in place for more recently acquired homes.

They’re designed to cover not just maintenance and staffing costs, but also a new model of supported accommodation — including on-site concierge or security where needed.

“This model enables the council to properly equip the team to be more responsive to those needs,” the decision report says.

“Currently, customers with mental health or drug/alcohol dependencies are typically placed in temporary accommodation settings without support… as there is no alternative available that would be more suitable.”

According to the report, just two visiting officers currently oversee around 900 placements.

The majority (85-90 per cent) of customers are eligible for Housing Benefit to help cover those costs and the team can assist customers to apply.

The council may claim back the full amount of Housing Benefit as subsidy from central government against a property that it owns or leases on a long-term basis for the purposes of temporary accommodation outside of a Housing Revenue Account

The council has benchmarked the proposed rates against similar supported housing providers.

The report said Clarence House, for instance, charges between £420–£480 per week; Holman House, £486; and Arpeggio, up to £752.

The council’s revised charges are “no more than 80 per cent” of private sector rates, the report notes.

The report adds that the “limited supply of affordable accommodation” has led to reliance on expensive nightly rate and hotel accommodation which has contributed to “unprecedented financial overspend pressure” of c£4.5 million for the financial year 2024/2025.

“There is a risk of welfare to vulnerable customers if the council fails to provide sufficient support,” the report states. “Without increased rent and service charges it is not possible to remodel the units as supported.”

The document acknowledges that the percentage increase may appear high.

“Because the rates have not been reviewed for a long period of time, it is recognised that the percentage increases proposed are significantly higher than they would ordinarily be,” it notes.

A new annual rent and service charge review process will now be introduced to prevent similar gaps from forming in future.

The date this decision can be implemented, if not called in, is May 2, 2025.

The numbers:

• £450,000 - shortfall in managing council-owned temporary homes (2023/24)
• £4.5million - forecast overspend on total temporary accommodation (2024/25)
• 2 officers - currently managing 900 placements
• £44 per night - average loss to council per hotel placement
• 60% - cap on new rents compared to private sector equivalents